For more informationEmail ruth.kaufman@btinternet.com

Some examples ofO.R. in the third sector

Improving performance by redesigning shiftsThe client: Crimestoppers: the charity which helps solve crime through members of the public providing information anonymously.

The client’s problem: How to take on new business and improve performance without a big increase in staffing costs

The solution•A simulation model of the call centre using PRISM software, used to try out different staffing patterns

•Thorough data analysis to understand variation in demand

•Recommended staffing levels for different demands

The benefits•Better performance without increasing cost, through new shift patterns

•Ability to continue to improve, and to adapt to changing circumstances, into the future

“We’ve benefited hugely from your work and support in all areas of the project, and from an organisational perspective you’ve enabled us to take a highly professional approach to increasing the efficiency of our charity” (Performance Manager)

The approachTwo OR Society volunteers specified data requirements and analysed data on demand for Crimestoppers services both via phone calls and online forms. They summarised arrival patterns by time of day, day of week, and time of year.They built a simulation model of the call centre, using PRISM software, based on three separate staff groups: call handlers, online staff and shift leaders. The model allowed phone calls to be diverted from call handlers to other staff at busy times.They validated the model using actual data on arrivals and staffing for a specific week and then used it to explore the impact on KPIs of different proposed staffing patterns.They produced a report recommending new shift patterns which improved performance without any increase in staffing costs.

For more informationEmailOr tel

Improving processes, increasing impactThe client: Reach: an organisation matching skilled volunteers to charities that need them

The client’s problem: to improve the efficiency and effectiveness of matching processes, free up resource, develop more value adding activities

The solution•Identified short term efficiency improvements

•Recommended additional value adding activities

•Identified ways of measuring impact

•Recommended a roadmap for moving to a new service delivery model

The benefits•A new perspective on current processes, helping develop, challenge and validate internal thinking

•Skilled staff could be freed up to deliver more value, through early implementation of one process improvement, and planning for more

•Reach services can be better targeted and marketed, through improved impact measurement

“Consultants approached the issues from a holistic point of view and homed in on key issues. Very thorough and professional. Some very useful new ideas which we will explore.” (Director of Services)

The approachTwo ORS volunteers spent a day interviewing staff and facilitating focus groups with teams of matching staff and IT support. They work shadowed one of the ‘matchers’ and the Foundation Services Co-ordinator, and discussed potential measures of impact with the Research and Business Analysis Manager. They examined available documentation, collated and distilled the information, and discussed issues identified with a process improvement expert.They produced a report with clear recommendations for process improvements and potential value adding activities that could be developed with the released resource. These recommendations were phased into short, medium and long term.

For more informationEmailOr tel

Managing risk, ensuring sustainabilityThe client: a community youth venture

The client’s problem: to ensure sustainability, management needed a risk management plan which had the involvement and backing of trustees.

The solution•define and prioritise the key factors necessary to sustainability of the venture

•identify key risks to its continuation

•assign mitigating actions to specific individuals to ensure risk reduction

•provide an Excel spreadsheet for the organisation to take over the process

The benefits•trustees were fully involved in risk identification, enabling them to play their proper part in risk management and oversight

•risks were reduced through sensible and proportionate mitigation

•the venture’s ability to remain in business was significantly improved

“This work was very beneficial ..” (Chair of Board)

“Risk management is now coming from the top down..” (Chief Executive)

The approachBlue Link Consulting started by eliciting individual board members' initial thoughts and combining these into an 'influence diagram‘. This gave them a visual and intuitive display of the connections and interplay between all aspects of a complex environment. We then provided expert facilitation to enable them to reach a jointly-owned and robust view of the key risks, consequences and mitigation. By grouping the risks into three main areas - factors affecting the wood itself; personnel issues; finance issues – we made it easier to assess the risks, and plan for their mitigation. Finally, we converted this into an Excel spreadsheet showing risks, level, impact, and actions assigned to mitigate them, so that the organisation itself could take over the process going forward.

For more informationEmailOr tel

The client: a small new community-based charity aspiring to develop supported housing

The client’s problem: the group, mostly of carers, wanted to act to address the local shortage of housing options for adults with learning disabilities, and needed some research to help decide how to proceed

The solution• enable group to understand the challenges it faces, and their scale

• provide a stock of research material that it can use in a variety of contexts

• support lead trustee to build her experience of discussions with council and grant or loan providers, and facilitate group in taking decision on timing of further work

The benefits• the group has a better chance of longer term effectiveness, because it is better able to formulate strategy with confidence, and to plan how to deal with the current uncertain environment

• the group is armed with information to support fundraising, awareness-raising and future service delivery, giving it capacity to be more influential, as well as more effective

• the group is better able to negotiate effectively with important partners

• all of these factors mean that the group is more attractive to funders and commissioners and more likely to be able to achieve its goals

“We now have a stock of valuable research material which we can put to a variety of uses” (Lead trustee)

The approachAt the start, the group knew that it needed to know a lot more about a lot of things, but couldn’t easily prioritise this. The analyst began by taking an incremental approach using presentations and initial papers to board meetings aimed at helping the group to identify and clarify what it already knew and what it needed to know. This developed into a gradually evolving set of papers and reports which could form the group’s evidence base. By providing hands-on support, after the initial work, to the lead trustee in developing a financial plan and business case, and in approaches to possible funders and the local council, the group was helped to develop its capacity at making use of the research material in practice, and to identify its further information needs.

.

For more informationEmailOr tel

Getting started: what to do first in a complex world

0.5%

1%

2%

Lambeth England

Residential care out of area

Residential care within area

Own home: receiving 'Supporting People' services

Family or own home: receiving 'Community Care'

Family or own home: not receiving support or care services, with learning disabilities sufficiently severe to be identifiable by DoH 2003/4 survey

Others in family or own home: mostly with mild learning disabilities

Types of accommodation where adults with learning disabilities are living: Lambeth and England overall compared

% of all adults

No.s living in community:

= 0-10

= 11-20

= 21-30

= 31-40

= 41-50

= 51-60

Where the residential care homes are in Lambeth

= Residential care home

0 1 2 3 4

£K per resident per week

Full proposals without specialistsFull proposals

Competitor ECompetitor DCompetitor CCompetitor BCompetitor A

Competitor analysis: Unit cost comparisons - total cost excluding loan interest and repayments) per resident

(Note: Width of bands indicate uncertainty in estimates from incompleteness of available information)

The client: a housing-related charity running community development projects

The client’s problem: the charity wanted to improve its exploitation of externally available statistical data and other information in its work

The solution• provide a reference document and guidance on the range of possibilities, with illustrations

• provide specific step-by-step guidance on exploiting a particular information source that should be of frequent value

• work with individual staff to make and demonstrate practical contributions to current projects

• provide 2 in-depth seminars on specific complex subjects, to illustrate some more extensive uses of data

The benefits• the organisation has greater capacity to exploit external statistics and other information in the different aspects of its work, eg overall planning and prioritisation, fundraising, project management and evaluation, and so to improve its effectiveness

• some existing projects have already improved their planning, fundraising and evaluation, improving the organisation’s impact and reputation

• staff and partners have improved knowledge about some relevant complex issues, improving their personal credibility and authority and leading to greater effectiveness and influence for the organisation as a whole

The approachThe analyst began with a scoping study of the organisation’s work programmes, past and present, to propose options for how the work should proceed. After discussions with the senior managers, a two-pronged approach was chosen. This involved: firstly, producing detailed research, reference material and guidance on the different types and sources of information available which could be useful to the different stages of the organisation’s work (from high-level planning and fundraising, to project planning, operation and evaluation); and secondly making practical contributions during the course of the project, both to make useful real-time contributions to existing projects and to demonstrate possibilities. The latter included in-depth seminars on 2 complex subjects to all the organisation’s staff, and specific analytical contributions to a few current projects working with individual staff.

.

For more informationEmailOr tel

External data: making it work for you

Percentage of a Local Authority's neighbourhoods which are in the 1%, 10%, 20% and 30% most multiply deprived in England: London LAs

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

In 1% most deprived In 2-10% most deprived In 11-20% most deprived In 21-30% most deprived

Averag e 2001-2006 mig ration rates for L As in Wes t Midlands - 'long -term' international inflows

0

2

4

6

8

10

12

14

16

Her

efor

dshi

re

Sto

ke-o

n-T

rent

Tel

ford

and

Wre

kin

Brid

gnor

th

Nor

th S

hrop

shire

Osw

estr

y

Shr

ewsb

ury

and

Atc

ham

Sou

th S

hrop

shire

Can

nock

Cha

se

Eas

t Sta

fford

shire

Lich

field

New

cast

le-u

nder

-Lym

e

Sou

th S

taffo

rdsh

ire

Sta

fford

Sta

fford

shire

Moo

rland

s

Tam

wor

th

Nor

th W

arw

icks

hire

Nun

eato

n an

d B

edw

orth

Rug

by

Str

atfor

d-on

-Avo

n

War

wic

k

Birm

ingh

am

Cov

entr

y

Dud

ley

San

dwel

l

Sol

ihul

l

Wal

sall

Wol

verh

ampt

on

Bro

msg

rove

Mal

vern

Hills

Red

ditc

h

Wor

cest

er

Wyc

havo

n

Wyr

e F

ores

tMig

ratio

n pe

r 1,

000

popu

latio

n pe

r yr

Birmingham: population change 2001 to 2005

0

100

200

300

400

500

600

700

Whi

te: B

ritish

Whi

te: I

rish

Whi

te: O

ther

Whi

te

Mix

ed: W

hite

and

Bla

ckC

arib

bean

Mix

ed: W

hite

and

Bla

ck A

fric

an

Mix

ed: W

hite

and

Asi

an

Mix

ed: O

ther

Mix

ed

Asi

an o

r A

sian

Briti

sh: I

ndia

n

Asi

an o

r A

sian

Briti

sh: P

akis

tani

Asi

an o

r A

sian

Briti

sh:

Ban

glad

eshi

Asi

an o

r A

sian

Briti

sh: O

ther

Asi

an

Bla

ck o

r B

lack

Briti

sh: B

lack

Car

ibbe

an

Bla

ck o

r B

lack

Briti

sh: B

lack

Afr

ican

Bla

ck o

r B

lack

Briti

sh: O

ther

Bla

ck

Chi

nese

or

Oth

er E

thni

c G

roup

:C

hine

se

Chi

nese

or

Oth

er E

thni

c G

roup

:O

ther

Pop

ulati

on 0

00s

2001

2005

LHA rates in London

0500

100015002000

Central L

ondon

Inner Eas

t Lo...

Outer East

L...

Inner North

...

Outer North

...

North W

est L..

.

West

London

Inner South ...

Outer South

...

Outer South

...

Inner South Ea

..

Outer South

Ea..

£s p

er w

eek

2 beds

5 beds

Improving performance managementThe client: A media sector charity supporting freelance newsgatherers worldwide

The client’s problem: In a small organisation where everyone has to be flexible about their roles it’s easy to get bogged down in daily operations and not devote enough time to strategy and growth.

The solution•A review of business processes and analysis of how everyone in the team was spending their time

•A re-design of roles and responsibilities to enable the Director to focus her time on Fund-raising and Strategy

•Implementation of a CRM system with performance metrics and reporting

The benefits•By understanding where everyone spent their time, it became clear that the Director was over-loaded with operational matters that could be better dealt with by other team members

•Freeing-up the Director’s time and re-structuring everyone’s roles and responsibilities has enabled the Trust to focus its efforts more effectively on fund-raising

•The CRM system has provided an effective way to manage relationships with donors and beneficiaries and provides up-to-the-minute performance reports on fundraising

The approachFacilitated by Improvement Skills Consulting, the organisation’s key business processes were defined and broken down into key activities. Staff were asked to identify how their time was spent against each of these activities. The analysis revealed a mis-match between what the Director felt was needed and how the team actually spent its time. Several options were developed for restructuring roles and workloads; these were presented to the Trustees and a preferred option was selected. The analysis of processes also highlighted the need for a single CRM system (to replace four separate databases), with integrated performance reporting. A cloud-based CRM solution was implemented and has been tailored to the Trust’s requirements, enabling them to eliminate data duplication and to create timely and accurate performance reports.

For more informationEmailOr tel

The client: a small international ‘umbrella’ charity for street children

The client’s problem: the new fundraising manager wanted to improve the arguments and evidence for why the group’s work should be funded

The solution• construct logical and graphical descriptions for how the group achieves its impacts

• provide systematic analysis, of extensive unstructured written material, about group’s past work and its actual and possible impacts

• develop new logic-based impact-focussed processes for the grants scheme, and then test and refine via analysis using past grants applications and consultation

The benefits• the fundraising manager has been assisted in reformulating the fundamental arguments for the funding of the group’s work, increasing its chances of securing funding

• the organisation has improved evidence on what its has done and what it has funded others to do in the past and on what may have been achieved, plus clearer appreciation of where its evidence is limited and why, enabling it to improve the effectiveness of its future planning and fundraising

• the organisation has been enabled to improve the effectiveness of its grants scheme

The approachThe analyst began with a scoping study of the group’s work programmes, past and present, to propose options for how the work should proceed. Two strands of work were agreed: firstly, to draw together and analyse existing information held within the organisation about past projects that could be used as supporting evidence to arguments for funding the organisation’s different work programmes; and, secondly, to review, and propose a redesign to, the operational processes of the group’s small grants scheme, with the aim of giving these a much greater focus on impact. This required, in both cases, a systematic analysis of a large quantity of unstructured written material, followed by a consultative approach with the group’s staff and relevant trustees to agree new processes for the grants scheme.

.

For more informationEmailOr tel

Fundraising: getting the evidence, telling the story

Central staffsupport &

management

Research

Capacity Building

Advocacy

Of members

Of allies

Reduces harm & barriers forstreet children

Improves grassrootssupport & help to street children

STREET CHILDREN

ORGANISATION AS A WHOLE

The organisation's four programmes

and how they have their impact

The 4 programmes support & strengthen each other,

b) By getting others to change policies & practices

a) By improving grassroots work with street children

and impact on street children:-

The client: an NGO and social enterprise running a health centre in rural Uganda

The client’s problem: the NGO had run into severe problems with keeping on top of its financial position and short-term planning, partly as a result of the complexities of the local reliance on non-cash transactions.

The solution• provide one-to-one guidance and support to finance manager on technical solutions to financial processes

• set-up and facilitate participative short-term budget planning sessions

• develop locally suitable technology to support this, eg using of home-made blackboards as ‘spreadsheets’ to record and display the agreed budgets

• evolve use of participative planning sessions, once working, to start to address planning beyond short-term

The benefits• the organisation is now in much better control of its use of resources, and is better able to manage the variety of financial complexities and risks that have caused problems in the past, improving its current effectiveness

• the organisation understands better what it needs from its local manager, and also is looking beyond short-term problems to start more strategic planning, enabling it to improve its future effectiveness

• the local finance manager has increased personal capacity, for current and future jobs

“I now understand better what I need from a local manager” (Director)“The monthly planning sessions are a very useful way to do this” (Finance manager)

The approachThe analyst began with conversations with the different staff, plus analysis of files, to try to understand the state of play in the organisation. It was clear that it was not on top of its recent financial performance and current position, but it required detailed analysis of the various (incomplete) bookkeeping records from recent years to understand why. The main problems had arisen because financial recording processes and financial management overall were not dealing adequately with a wide variety of debts and credits that arose normally because of the frequent lack of cash in this local rural subsistence economy. A variety of lines of analytical and facilitation work were required to overcome this, including technical fixes to record-keeping guidance, coaching of the new finance manager, use of home-made blackboards as spreadsheets for recording budgets, and crucially monthly participative financial review, budgeting and short-term planning sessions. The latter also provided a useful forum for starting longer-term planning.

.

For more informationEmailOr tel

Controlling costs and spending in a non-cash economy

Supporting a Homeless Charity’s Annual Client Survey

The client: A Westminster-based charity supporting homeless people sleeping rough and families in need.

The client’s problem: The Cardinal Hume Centre needed to know its impact on its clients and ensure that their voices were heard.

The solution•A well designed survey with a representative sample of online, phone and face to face client input.

•Well presented results which provided maximum impact and insight.

•A well written, professional report completed to a tight deadline.

•A standard and framework established for future surveys.

The benefits•Provided the charity with crucial intelligence and insight.

•Enabled the charity to deliver an evidence-based report for current and potential funders.

•Helped the charity continue to refocus efforts in order to meet the changing needs of a diverse client group.

The approachThe analyst attended meetings with staff and volunteers to understand key requirements for the survey and to ensure that all involved were working towards a common goal. Roles and timescales were determined in order to deliver a survey to the Centre’s deadline. The survey was designed and refined, before being launched online and through a ‘survey day’, where clients were interviewed in person and by phone. The analyst led in extracting initial key findings from the data and delegating sub-tasks to a team. Closely liaising with the client, the findings of the evaluation survey were written into a report which was completed to a tight deadline.

“We valued the opportunity to work collaboratively and without doubt benefited from the analyst’s expertise and commitment to the project” (Operations Director)

Developing trustee financial confidenceThe client: a developing home care co-operative

The client’s problem: a new social enterprise’s progress to date had been much slower than assumed in original financial plans; re-planning was needed, but trustees had limited understanding of original plans. The solution

• develop accessible graphical ways of presenting complex financial plans

• use existing meeting agenda items as training opportunities

• once group’s basic understanding develops, find opportunity to trigger fuller discussion of key issues

• if possible, move to simpler financial planning model to enable broader trustee ‘ownership’

The benefits• clearer medium term plans have been developed, based on simpler more realistic growth targets, which the trustees can understand and ‘own’

• trustees understand much more what the business needs to do in order to reach a position of financial self-sustainability

• trustees can see much better what part their efforts, eg in promoting the business, can play in helping the move towards financial self-sustainability

“We now understand this all much better” (Trustees)

The approachThe analyst began by analysing and developing accessible ways of presenting fairly complex original financial plans to enable understanding and discussion, using graphics to talk through at meetings. He used a incremental approach of using agenda items at successive board meetings as opportunities for board training, eg budget setting, mid-year report against budget, and discussion. This led to the triggering, at a later meeting, of a discussion about the need to redraw financial plans and revise assumptions, and the suggestion of a simpler medium term objective to analyse and present at next meeting. At the next meeting, a financial plan based on the simpler objective and assumptions was presented, and the trustees were able to feel they had a good overall understanding of this. This enabled a constructive discussion of key assumptions and risks, and the trustees were better able to see how their own efforts could contribute to the ‘whole’.

.

For more informationEmailOr tel

Expenditure(+) and income(-) by organisational category, but with care work income shown net of care worker costs

-40000

-30000

-20000

-10000

0

10000

20000

30000

Oct-

09

N D J

an-

10

F M A M J J A S O N D J

an-

11

F M A M J J A S O N D J

an-

12

F M A M J J A S O N D J

an-

13

F M

Month

£

Corporate Income

Cluster Care WorkIncome NET OF CareWorker CostsCorporate Set-up Costs

Cluster Other Costs

Corporate Running Costs

Running balance at month end

-20000

-10000

0

10000

20000

30000

40000

50000

60000

70000

Oct-09

N D J an-10

F M A M J J A S O N D J an-11

F M A M J J A S O N D J an-12

F M A M J J A S O N D J an-13

F M

Month

£

Running balance,surplus(+) or deficit(-)

Facing up to uncertaintyThe client: A medium-sized charity supporting women affected by domestic violence

The client’s problem: All the main funding sources were due to terminate within the next six months, and funder decisions on new or replacement sources would not be made until the last minute

The solution•A spreadsheet model to support ‘what if’ analysis of different combinations of income and projects

•A facilitated workshop to help Director and Trustees to explore different futures

•Identification of priority actions and contingency plans

The benefits•By being able to see clearly the combined consequences of different sets of events, the Trustees and Director could think realistically about how they could respond or prepare for them

•This enabled them to take difficult decisions about timing of service closure, to prioritise fundraising, and to lay contingency plans

•This in turn enabled them to survive and continue to provide their core service in the face of a bleak and uncertain funding environment.

The approachThe organisation’s total set of activities were broken down into direct project work, and central overheads, some of which were fixed and some of which varied with the scale of particular activities. All possible sources of funding were identified; some ‘restricted’ associated with particular projects, and some ‘unrestricted’. The spreadsheet was set up so that users could ask the questions ‘what if’: what if certain sources of funding materialised, what if certain projects were cut, what if salaries were increased, what if staff numbers were changed… with the answers in terms of: the overall surplus/deficit; the amount of additional funding needed to break even; the number of clients helped and the overall contribution to the organisation’s objectives. This was then used in a real-time session with Trustees and Director, giving them insight into the relationship between cost and income, and allowing them to test different management approaches.

For more informationEmailOr tel

Overall outcome (scenario 2)

There is a deficit carried forward from 2008/9No new East funding, and 20% of other speculative funding is achieved.East office is closed downWest counsellors are reducedAdmin costs are reduced

2009/10IncomeFirm grant 447,000Speculative grant 71,200Other 25,000

Total 543,200

ExpenditureCharitable 45,518Staff 386,491Premises 40,000Admin 35,785Equipment 5,000Depreciation 6,477

Total 519,271

Net surplus/deficit 23,929

Surplus/deficit cf from 2008/9 -50,000Surplus/deficit cf to 2010/11 -26,071

No of counselling sessions 3,440No of groupworkers 0.51No of advocates 8.10

Prioritising ActionThe client: Kaleidoscope Enterprise Ltd (KEL) supplies services to black and minority ethnic groups in the Welwyn – Hatfield and wider areas with aims to empower disadvantaged people and groups

KEL also runs the Kaleidoscope Festival to celebrate diverse cultures (http://www.kaleidoscopefestival.org.uk/)

The client’s problem: KEL faced increasing pressure with reduced funding and loss of staff. The organisation sought support to the manager to develop a sustainable plan to deliver services

The solution

•Identifying strengths and weaknesses and exposing issues

•Supporting an open dialogue

•Developing a focus on what is achievable

The benefits•The organisation has greater clarity of priorities•KEL has a developing action plan•The organisation is emerging from potential decline and re-establishing its presence

“Very empathetic and honest. An objective outsider who could add to my own knowledge and skills in understanding my organisation’s needs.”

The approachThe consultant met with the manager and the Trustees to discuss the issues and ran a workshop to which Trustees, staff and stakeholders were invited. The workshop identified issues around what worked well and not so well and began an open dialogue where information was shared and a greater level of common understanding developed.The output from the workshop was used to develop a report for wider dissemination to key people unable to be present. It also enabled the development of an initial action plan for the manager to discuss with the Trustees and prioritise the organisation’s activity to those likely to make the greatest impact upon their aims and objectives. The intervention also provided a mentoring opportunity for the manager.

For more informationEmailOr tel

www.whemgroup.org.uk